application of balanced scorecard and business intelligence tools to improve Affin Bank Berhad performance

1. MIOR SAIFUL AZWAN BIN MIOR
SAFIAN

2. Objectives
The completion of such module, the purpose is
for:
• Recommendation and solutions will be
provided in strengthening weak points
identified in BP 1
• The application of BSC and BI in rectifying and
improve ineffectiveness of company at hand
• Company’s total profit will be projected for 5
years through forecasting

3. Company Overview
• Affin Bank Berhad (AFFINBANK) is an established
banking and financial institution in Malaysia and
fully operated as Bumiputra company
• The company are involves in providing services to
public and private sector in terms of financial
intermediate and investor. Since its incorporation
in 2001, AFFINBANK has provided Malaysia with
vast services in various banking sector such as
Enterprise Banking, Consumer Banking, Debt and
Capital Markets and Hire Purchase.

4. Vision
• A premier partner for
financial growth and
innovative services
Mission
• To provide innovative
financial solutions and
services to target
customers in order to
generate profits and
create value for our
shareholders and other
stakeholders.

5. Company Background
• Affin Bank Berhad (AFFINBANK) commenced and
incorporated in 2001 following the sequence of
event, a merger between the former Perwira
Affin Bank Berhad and BSN Commercial (M)
Berhad in August 2000.
• In June 2005, it merged with the former Affin-ACF
Finance Berhad. Affin Bank Berhad is the wholly
own subsidiary of Affin Holdings Berhad.

6. Problematic Areas: Strategic Marketing
AREAS
ISSUES
PROMOTION
1) The marketing or promotion strategy
that AFFINBANK strategize can be
considered as weak as compared to
other financial institutions, in this
case:
• promotional efforts are only focus on
advertising through their official
website and the placing of bunting at
AFFINBANK’s various branch. Thus, the
communication of such promotions
are not made in large scale
• The web design is also an important
tool in marketing AFFINBANK brand
awareness. The issue that lies in its
web design are too simple and dull
• Loyalty programs or rewards especially
debit card users

7. Problematic Areas: Strategic Marketing
AREAS
ISSUES
STRATEGIC BRAND MANAGEMENT
2) In the case for AFFINBANK, its brand
awareness or exposure as compared to
other local banking institutions can be
regard as weak. The reasons is as below:
• Promotion efforts that are weak
• Low market reachability due to lack of
branches and ATM machines at
strategic locations
• AFFINBANK market priority mainly for
government sectors
• Customers perception on AFFINBANK
as a small banking institution

8. Problematic Areas: Strategic Marketing
AREAS
ISSUES
MARKETS AND COMPETITIVE SPACE
1.1)Customer Focus
• AFFINANK main focus lies with government
sectors. This is mostly probably its political
connection and attractive rates that
AFFINBANK provides to the government
sector. Political connection here means
that, AFFINBANK major shareholder is
LEMBAGA TABUNG ANGKATAN TENTERA
(LTAT) which might benefits AFFINBANK in
serving for government sectors
• However, this one side focus by neglecting
other institutions such as private sectors
would prevent AFFINBANK to be widely
recognised in corporate banking and will
not be the brand to be considered when
private sectors doing transactions such as
fixed deposit placing or investment.

9. Problematic Areas: Strategic Marketing
AREAS
ISSUES
MARKETS AND COMPETITIVE SPACE
1.2)Competitors
• Due to its nature of business where other
banking institutions are also offering to
individual and corporate customers similar
products and services have create intense
rivalry among banks.
• The existence of many banking institutions
have also established vast options for
clients to choose which service provider
that they will prefer and normally they will
go for a well-established and strong brand
image.
• Large marketing efforts by rivals has
overshadowed AFFINBANK position in the
industry

10. Problematic Areas: Operations
Management
AREAS
BRANCH/CHANNEL OF NETWORKS
ISSUES
1) In the case for AFFINBANK:
• The lack of adequate and sufficient network
of branch has cost this banking institution
its brand equity in this particular industry.
As for example, AFFINBANK branch
nationwide is 100, CimB Bank is 362 and
Maybank is 401. Thus, we can see the
difference in total size of networks of
AFFINBANK relative to its competitors.
• AFFINBANK ATM machines are also limited
in its reachability. As for comparison,
AFFINBANK ATM locations in the federal
territory are only located at 18 places, but
as for other banks such as Maybank, it has
52 location of ATM in federal territory and
for CiMB Bank are 48

11. Problematic Areas: Operations
Management
AREAS
ISSUES
STRATEGIC MANAGEMENT
1) Based on financial ratios that have been
calculated earlier, AFFINBANK can be
summarizing as a moderate risk taker in using
their assets in generating profits. As the
calculation for Return on Assets signifies the
uses of AFFINBANK assets has been
consistently in the range of 2% from 2007 until
2012. There are no sign that AFFINBANK been
aggressive in making optima decisions to gain
more economic performance.
2) Apart from numerical data, other factors
that resemble such similarities of moderate risk
taker is the investment that AFFINBANK made
in expanding their business operations or
increased their market penetration despite
having large total assets and revenue growth
on yearly basis.

12. Balance ScoreCard (BSC)
• Predict future financial performance rather
than simply report what’s already happened.

13. Affin Bank Berhad BSC Framework

14. Steps to Achieve BSC Objectives
•
•
•
•
•
•
•
Product Bundling
Community Marketing
Improve Income
Grow by Acquisition
Grow by Expansion
Grow by Partnership
Grow Organically

15. Rationalization of BSC to Create
Customer Values
•
•
•
•
•
•
•
Customer
Processes
Channels
Products
Services
Efficiency
Capital Optimization

16. Business Intelligence
• Made up of several related activities, including
data mining, online analytical processing,
querying and reporting.
• Improve decision making, cut costs and
identify new business opportunities.

17. Implementation of BI to Affin Bank
Berhad
• Customer Profitability Management
• Financial and Operational Performance
Management
• Profitability Management
• Credit Analysis
• Regulatory Compliance
• Operations Management

18. Financial Forecast (Projection of
Profit/Sales)

19. Seasonal Variation Pattern

20. Financial Forecast (Seasonal
Variations)

21. Quarterly Pattern

22. Financial Forecast (5 Years Profit)

23. Conclusion
• In the short term, I am optimistic with the healthy
expansion of Malaysia economic growth complement
with the increased number of high earners and low
inflation that can provide AFFINBANK a thrust to move
on, in expanding their business operations
• In the long perspective, it is crucial for Affin Bank
Berhad to expand it market growth and keep innovate
banking products that suits the customers. By doing
that, it needs to rectify any ineffectiveness and
inefficiency in its business processes and be
progressive.